On October 26, 2011, the Israeli Petroleum Commissioner notified Zion Oil & Gas, Inc. (the "Company" or “Zion”) that it was approving the Company’s request for a one-year extension on the Company’s Joseph License, extending the expiration date of the Joseph License until October 10, 2012.

The Company’s “Joseph License” covers approximately 83,272 acres on the Israeli coastal plain south of the Asher-Menashe License between Caesarea in the north and Netanya in the south. The Joseph License had an initial three-year term that ran from October 10, 2007 through October 10, 2010 and was subsequently extended to October 10, 2011, and has now been extended for an additional one-year period ending October 10, 2012. At the option of the Israeli Petroleum Commissioner, the Joseph License may be extended for additional one-year periods up to 2014.

Under the terms of the Joseph License, as extended, Zion is required (i) to submit to the Israeli Petroleum Commissioner a report analyzing the results of the last three exploratory wells that the Company drilled on the Joseph License within the Ma’anit structure and a regional geologic analysis of the Ma’anit structure by February 1, 2012, (ii) sign an agreement with an appropriate geological services provider to acquire approximately 15 kilometers of 2D seismic by March 1, 2012, (iii) perform the seismic survey, process and integrate the data and submit the process report and ancillary material to the National archives at the Geophysics Institute by June 1, 2012, (iv) process and integrate the results of the new seismic survey with existing seismic lines, update the geophysical maps and submit a geophysical summary and file a report with the Israeli Petroleum Commissioner by August 1, 2012,(v) to identify a new drilling prospect by September 1, 2012 that includes a description of the geological background, the purposes of the drilling, the petroleum system/s that are related therein and a geological forecast and engineering plan and (vi) to sign a drilling contract to drill a new well (or re-enter an existing well) by October 1, 2012.

Attached, as Exhibit 10.1, is an English translation from the original Hebrew of the extension letter.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

Zion Oil and Gas, Inc.

Date: October 27, 2011

By:

/s/ Richard J. Rinberg

Richard J. Rinberg

Chief Executive Officer

EX-10.1
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EXHIBIT 10.1
Unassociated Document

Exhibit 10.1

[TRANSLATION FROM HEBREW]

STATE OF ISRAEL

MINISTRY OF NATIONAL INFRASTRUCTURES

LICENSING AUTHORITY NATURAL RESOURCES

Oil Exploration

24 October 2011

Mr Richard Rinberg,CEO

Fax: 04/6231427

Zion Oil & Gas, Inc

22 Bareket Northern Industrial Zone

Caesarea 38900

Dear Sir

Re:Joseph License/339- Extending the Validity

Your letter dated 19 September 2011

In view of your abovementioned request I hereby extend the validity of the above license for an additional year until 10.10. 2012. During the extension period your company shall execute the following work program:

a.

Prepare an analysis of the results of Ma'anit drilling-1, 2, 3 and a regional geological analysis of the Ma'anit structure and submit a summary report with respect thereto by - 1 February 2012.

b.

Present a contract for a supplementary 2D seismic survey within the license area totaling approximately 15 kilometers by -1 March 2012.

c.

Carry out the seismic survey, process the data and submit the process report and ancillary material to the National archives at the Geophysics Institute as defined in the guidelines for transferring seismic data, by - 1 June 2012.

d.

Prepare an interpretation of the new seismic survey, integrate with old lines, update the geophysical maps and submit a geophysical summary by -1 August 2012.

e.

Prepare a drilling prospectus that includes a description of the geological background, the purposes of the drilling and the petroleum system/s that are related therein and a geological forecast and engineering plan for the proposed drilling by -1 September 2012.

f.

Execute a contract with a drilling contractor to drill a new well or drill the existing well by - 1 October 2012.

I find it prudent to make it clear the importance of adhering to the abovementioned dates in order to develop the license with proper diligence pursuant to the law.